S&P 500, Dow Jones open high: Pharma stocks shine | Bitcoin still Bearish

The S&P 500 and Dow Jones started the week with modest gains banking upon the Pharmaceutical sector. Bitcoin is still into a Bearish phase and doesn't show any apparent positive movement.

Dow Jones, S&P 500: Modest gains on opening

The US stock markets opened positive on Monday as optimism regarding the COVID-19 pandemic crisis handling has infused into the US Financial system. 

 

How the major stock Indices performed:

  • The Dow (DJI) was up by 1.02% or 221.05 points and stands at 21,857.83, at the time of publication of this article. 
  • S&P 500 was up by 1.45% and stands at 2,578.32.

 

This optimism most likely banks upon:

  1. A rise in Pharma-stocks: Abbott Laboratories secured permission to conduct tests that can identify positive Coronavirus cases in five minutes. Abbott’s shares are up by 8.48%. Johnson & Johnson has announced a potential vaccine candidate for the virus, and its shares are up by 7.10%.
  2. Direct bank transfer of $1,200 to every resident American and another $500 for each child of that household. Direct transfer ensures a faster execution and also cuts out the middleman.

 

Stocks in focus:

  • Johnson & Johnson up by 6.13%
  • Intel Corp up by 5.62%
  • Microsoft Corp. up by 4.95%
  • McKesson Corp. up by 7.80%

 

Bitcoin fails to hold the momentum: Holds Bearish consolidation

BTC/USD started the week with a surge in volumes of traded quantity. The price surged from its previous close of $5,900 to $6,505. However, the technical charts clearly show that the Bears are still in control, because of declining volume. Even though Bitcoin showed a glimpse of hope upon opening, it failed to hold the momentum. As of writing this article, the BTCUSD stands at $6,400.55 and is down by 0.72%. 

  • The RSI doesn’t show any signal of overbuying.
  • Fibonacci retracement indicates a further downward movement.
  • The 4-hour MACD Divergence is in green; however, it shows very little volume.
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